Palm slips for second session as profit-taking weighs

Malaysian palm oil futures closed lower for a second consecutive session on Wednesday, Business Recorder reported, as traders took profits off the table. The November contract on the Bursa Malaysia Derivatives Exchange finished at 4,967 ringgit ($1,220.99) per metric ton, a decline of 9 ringgit or 0.18%. Concerns about El Nino's effect on output nonetheless gave the market some support.

Paramalingam Supramaniam, a director at Pelindung Bestari, said the market still faces intermittent profit-taking but the wider trend stays bullish, driven by El Nino and an anticipated lack of rain. Traders are now awaiting August supply and demand figures from the Malaysian Palm Oil Board, due Thursday. Meanwhile, Brent crude climbed above $100 a barrel for the first time since 24 July as Middle East tensions deepened, lifting palm's appeal as a biodiesel feedstock.

Dalian's soyoil contract dropped 0.73% and its palm contract shed 1.09%, while Chicago soyoil gained 0.35%. The ringgit, which slipped 0.27% against the dollar, leaves palm a little less expensive for overseas purchasers. An Energy Ministry presentation at a parliamentary hearing showed Indonesia used 10.7 million kilolitres of palm-based biodiesel from January to early September, during its nationwide B50 rollout.